MEXICO CITY (AP) — Mexico announced Monday it has issued a 750-million-euro ($885 million) “green bond,” joining a dozen or so other countries with such sovereign debt placements.
Mexico’s Treasury Department said the bond is the first of its type to be linked to U.N. Sustainable Development Goals, or SDGs, that set out measurable goals to fight poverty, inequality and protect the environment.
The seven-year bond will pay an interest rate of 1.6% with a 1.3% coupon.
The department said the bond drew interest from 267 institutional investors worldwide. Green bond issues have gained traction in 2019 and 2020 after the first was issued almost four years ago. Mexico's bond will be used to fund programs to meet the SDGs.